European Commission Directorate-General for Trade

South Africa

South Africa is the EU's largest trading partner in Africa. Although it is a member of the ACP group of countries it is by far the strongest of sub-Saharan Africa's economies, and has an FTA with the EU. South Africa's exports to the EU are growing and the composition of those exports is becoming more diverse. South Africa is gradually moving from mainly commodity-based products to a more diversified export profile that includes manufactured products.

South Africa is Europe's largest trading partner in Africa

Trade in goods

• EU good exports to South Africa 2010: €21.507 million
• EU goods imports from South Africa 2010: €17.912 million

South Africa's primary exports to the EU are: fuels and mining products (27%), machinery and transport equipment (18%) and other semi-manufactured goods (16%). EU exports to South Africa are dominated by machinery & transport equipment (50%), chemicals (15%) and other semi-machinery (10%).

Trade in services

• EU services exports to South Africa 2009: €5.3 million
• EU services imports from South Africa 2009: €3.8 million

Foreign Direct Investment

• EU investment flows to South Africa 2009: €5.9 billion
• South Africa investment flows to EU 2009: €1.0 billion
• EU investment stocks in South Africa 2009: €70.8 billion
• South Africa investment stocks in EU 2009: €6.2 billion

More statistics on South Africa

The EU-South Africa FTA

South Africa's trade relations and development co-operation with the European Union (EU) are governed by the Trade, Development and Co-operation Agreement (TDCA) , which was signed in Pretoria on 11 October 1999. The TDCA aims, inter alia, to establish a free trade area over a 12 year period covering 90% of bilateral trade. The implementation of this agreement is overseen by the Joint Co-operation Council which also functions as a forum for overall dialogue between the EU and South Africa. The most recent meeting was the 12th Joint Cooperation Council held in Brussels 20 July 2011.

Following the dip in global bilateral trade volumes in 2009, South Africa's exports fell from €22 billion to €15 billion; however 2010 saw a 20% recovery to almost €18 billion, with total trade volumes rising almost 25% from €31 billion in 2009 to €39 billion in 2010.

South Africa and the ACP

South Africa, while part of the ACP group of countries, was not party to the same preferential trade arrangements granted to the ACP under the Cotonou Agreement (2000). For the Economic Partnership Agreements (EPAs) which are the trade pillar of the Cotonou Agreement, South Africa joined the negotiations with the Southern African Development Community or SADC EPA Group in February 2007. While Botswana, Lesotho, Swaziland and Mozambique signed an interim or "stepping stone" EPA in 2009 (Namibia initialled it in 2007, but has not signed it yet), South Africa has opted not to join at this stage as its trade relations with the EU are governed by the TDCA. However, it has stated that it is in favour of joining a full EPA in the future and will continue to participate in negotiations with the goal of increasing regional integration and boosting competitiveness of the SADC economies.

While an emerging country, there are large parts of the population who live in poverty. The EU is by far South Africa’s most important development partner, providing for 70% of all external assistance funds.